Across the Dakotas, downtowns picking up steam

Downtowns throughout the U.S. are experiencing a rejuvenation as residents and visitors seek out the local products, businesses and unique experiences that only downtowns can offer.

The national trend is on display in the Upper Midwest -- in communities from Fargo to Rapid City, S.D. -- as districts are renovated, new businesses open and development groups devise long-term strategies for growth.

"Downtowns in North Dakota are really picking up steam," said Kate Herzog, marketing and assistant director of the Downtown Business Association of Bismarck.

Herzog credits much of downtown redevelopment to young professionals who have returned for the region's strong economy but still crave the urban amenities they've experienced elsewhere.

"A lot of those young professionals have brought back experiences with them from living outside of the state, specifically, supporting urban, local businesses and looking for that downtown element in their personal life," she said.

Downtowns also offer an attractive opportunity for communities because the mixed-use developments typical of downtowns produce significant tax revenue without requiring major spending on infrastructure, Herzog said.

"From an economic standpoint, you can't get much better than redeveloping a dense, urban core in terms of return on investment," she said.

PLANS AFOOT IN BISMARCK

Bismarck's downtown has made great strides in its redevelopment efforts. Unique eateries and retail stores have opened, and large developments, including Pine Properties' three-story Broadway Centre project, will provide more office, retail, restaurant and residential spaces when fully complete this year.

But much more could be done.

A recently completed downtown master plan identifies more than a dozen projects that could be carried out over the next few years, and the city was exploring public-private partnerships to help carry them out.

One of plan's highlights is the potential redevelopment of a parking lot at the city's historic Northern Pacific Depot into a public gathering space dubbed Depot Plaza. Herzog said a gathering space is key to downtown Bismarck's long-term vitality.

"That is extremely important, not only for the community to gather but to also make the downtown more family friendly," she said. "We don't have that iconic gathering space where you might have a Christmas tree lighting or where the public gathers in the summertime."

She points to Rapid City's Main Street Square as an example of how a gathering space can drive a successful downtown district.

"We love what Rapid City has done, and we're hoping to have that piece in downtown Bismarck come up soon," she said.

SUCCESS SQUARED IN RAPID CITY

Downtown Rapid City has experienced a rebirth within the last five years, and Main Street Square has been the engine driving the growth, said Dan Senftner, president and CEO of Destination Rapid City, the city's downtown development association.

The one-acre square includes ample green space, an interactive water fountain and an outdoor stage for summer events. In the winter, the square's lawn is converted to an ice-skating rink.

Senftner estimates that up to 700,000 people pass through Main Street Square every year -- a number likely to increase as more events are held in the square. Last year, 170 events were hosted in the square; more than 200 are scheduled this year, he said.

Since opening in 2011, Main Street Square has garnered national attention, and Senftner said he often fields inquiries from business owners and groups looking to create similar outdoor spaces in their communities.

He offers one piece of advice: Don't expect the city to do it all.

"The biggest mistake people have is they expect the city to pay for everything," he said. "The city won't pay for everything, and if you expect the city to do everything, it ain't gonna happen."

The Main Street Square idea was suggested in 2008 as part of a study to evaluate downtown. A group of business owners, including Senftner, formed Destination Rapid City and financially committed to developing the square. The group ultimately split the project's $7 million bill with the city and formed a Business Improvement District to fund the square's operations.

That fund was scheduled to support Main Street Square through the end of this year, but Senftner said money generated this year will instead be funneled to other downtown projects because there's enough private sponsor interest to support the square.

"I'm not going to say we don't need the money, but we have enough supporters now to do it on our own," he said. "So we want that money to be used to enhance something else downtown."

MOVING FORWARD IN FARGO

Outdoor gathering spaces are on the wish lists of many downtown groups, including in Fargo, which Senftner said "has a great thing going" and is primed for a Main Street Square-type project.

The idea of an outdoor skating rink and gathering space has resurfaced recently as city leaders develop plans for a new City Hall and flood protection along the Red River. Mike Hahn, president and CEO of the Fargo-Moorhead Downtown Community Partnership, said, "Now is the time to do it."

Hahn sees potential for multiple gathering areas scattered throughout smaller districts within a 100-block downtown area, perhaps including a large space similar to Main Street Square near the river.

"We have multiple different neighborhoods downtown, but we all recognize that we are part of the same district," he said.

Downtown Fargo has experienced a rebirth over the past several years and is trending toward continued growth, helped by the fairly recent expansion of North Dakota State University facilities into downtown and developers such as Doug Burgum's Kilbourne Group that are willing to invest.

More than 4,000 people live in Fargo's downtown area, in residences ranging from low-income housing to $500,000 condominiums. Hahn said the eclectic mix is heavy on millennials and empty nesters, both of whom are attracted to downtown living because they desire an active neighborhood without the upkeep requirements of a suburban household.

Potential large projects on the horizon include a retail/parking structure and a convention center, although both projects are several years from fruition. In the meantime, the partnership is in the early stages of implementing a Business Improvement District to fund continued maintenance of the downtown area.

Hahn credits the artist community for fueling downtown Fargo's continued revitalization and said he wants downtown to be the metro area's "cultural entertainment district."

"We're seeing a lot of people who want to do events and activities downtown," Hahn said, adding that the area's culinary sector continues to grow as well.

A GRAND CULINARY EXPERIENCE

Culinary activity has picked up in downtown Grand Forks, N.D., over the past few years as well, according to The Toasted Frog owner Jonathan Holth.

"When we opened (eight years ago) there were four or five restaurants; now there's over a dozen," he said. "So it's becoming more vibrant. We just want to make sure that that work doesn't go to waste and is built upon."

Holth is leading the charge for the Grand Forks Downtown Development Association, which is hiring staff and building membership while formulating a long-term strategic plan.

Much of downtown Grand Forks has been updated fairly recently as a result of the historic 1997 Red River flood, which gives it a head start in terms of public art and gathering spaces. Town Square, for example, hosts a popular farmers market in the summer, drawing hundreds of visitors every weekend.

"We've got an already beautiful downtown that we'd just like to expand on," Holth said. "We've got some great events. We think there could be more."

Holth is a committed member of downtowns in every community he does business in. He opened a Toasted Frog in downtown Bismarck three years ago and soon will open another in Fargo.

"Walking through the downtown area of any city, you get a sense of the history and how a community views itself," he said. "If you walk through a vibrant, well-maintained downtown, I think that speaks to how the rest of the city is."

Bonny Kemper, executive director of the Minot (N.D.) Business & Professional Association, agrees and said that sentiment is shared throughout the U.S.

"Cities are realizing that if the heart of their city is not thriving, the city as a whole does not thrive and grow and prosper," she said.

BETTER DAYS AHEAD IN MINOT

Like Grand Forks, Minot's downtown was devastated by flooding, but it is not yet fully recovered from the Souris River flood of 2011. Massive renovations will begin downtown this year to overhaul everything from streets to garbage receptacles.

The work will begin on the east end of downtown and move westward, so Main Street, where most downtown retailers are located, won't be affected until next year. The Broadway bridge also will be renovated next year, which will further limit accessibility to downtown businesses.

Kemper said downtown Minot business owners are bracing themselves for a few lean years during construction, but she encourages them to focus on the end result.

"You just have to hang on to the thought that it is going to get better," she said. "When it's all done, it's going to be beautiful."

Meanwhile, other downtown projects are contributing to an overall positive feel of the district. Minot Artspace Lofts, a 34-unit affordable living and working space for artists, recently opened and bills itself as "an anchor for continued investment in the creative economy."

The building includes more than 3,000 square feet of retail and commercial space and about 1,500 square feet of exhibition/gallery/community space in addition to the apartments.

Kemper said the association is doing everything it can to help businesses succeed while preparing for next year's renovations. The group formed a marketing campaign to encourage visitors to explore downtown and runs shuttles from hotels and the city's auditorium to downtown drop points to alleviate parking headaches for shoppers.

The group would like to continue adding retail stores, a grocery store, drugstore and entertainment options including a movie theater. All of these require capital and commitment, which Kemper said the association hopes to gain by hosting events and helping small businesses continue to succeed.